Transformation Integrated Strategy PRESENTATION TO portfolio committee of human settlements

Table of content State of Transformation in the Property Sector The size of the property sector Provincial racial statistics Current EAAB Transformational Programmes MTSF Targets Annual Performance Plan Targets Planned future transformational programmes Changes made to focus on transformation

State of transformation in the property sector- Race Although there is an increase in black professionals from 12% in 2012 to 17% in 2016, transformation in the property sector is a lingering challenge.

State of transformation in the property sector - 2016

State of transformation in the property sector-

State of transformation in the property sector- Youths by race

The size of the property sector R7 trillion

PROVINCIAL RACIAL STATISTICS 2016

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Current EAAB transformational programmes – Private Sector funded One Learner Program Province 2013 2014 2015 2016 Total to December 2016 Eastern Cape 39 78 102 84 303 Free State 17 15 37 43 112 Gauteng 609 1075 1560 1525 4769 Mpumalanga 56 93 139 86 374 Northern Cape 7 4 8 13 32 North West 24 69 35 160 Kwa-zulu Natal 109 140 258 223 730 Limpopo 47 230 Western Cape 19 54 58 228 Total 919 1523 2387 2109 6938

Challenges and Learning's Transformational challenges Attraction to the Industry can be overcome but low retention Lessons learner from the pilot indicate commission based remuneration challenges for the youth Lack of stock the sell in the market Resistance to change by existing estate agents Perception of youth becoming the new competition

Current EAAB transformational programmes – Seta Funded One Learner Program Province Number of Learners Gauteng 302 Kwa-zulu Natal 70 Mpumalanga 13 Free State Eastern Cape 20 Western Cape 11 Limpopo 7 Total 436 Province Number of Host Employers Gauteng 49 Kwa-zulu Natal 5 Mpumalanga 4 Free State 2 Eastern Cape Western Cape 3 Limpopo 1 Total 68

Current EAAB transformational programmes – Funded One Learner Program

Challenges and Learning's Transformational challenges Stipend from Seta too low to retain the youth Transport and support systems needs to enhanced Attraction to the Industry can be overcome but low retention Lessons learner from the pilot indicate commission based remuneration challenges for the youth Lack of stock the sell in the market Resistance to change by existing estate agents Perception of youth becoming the new competition

Challenges and Learning's Transformational challenges Private sector one learner program - 6938 – analyse the % has succeeded? Retention Rate - dropout rate and reasons Challenges –reliance on commissions that is likely to take time. Lessons – lack of comprehensive strategy, reliance only the pledges. Attraction strategy – What we will do different ? Review curriculum and program Redesign the architecture of the model Educate Black consumers to patronize their PDI’s Estate Agents

MTSF Targets Strategic Objective Strategic Plan Target Audited/Actual plan Estimated Performance Medium term targets   2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 5.1 Radio awareness Campaign - National N/A 9,811,000 housing consumers reached 400 000 housing consumers reached 12 000 000 housing consumers reached 14 000 000 housing consumers reached 16 000 000 housing consumers reached 5.2 Radio awareness Campaign - Community 445 000 housing consumers reached 500 000 housing consumers reached 600 000 housing consumers reached 700 000 housing consumers reached 5.3 Print media – Awareness 100 000 housing consumers reached 300 000 housing consumers reached 750 000 housing consumers reached 850 000 housing consumers reached

MTSF Targets Strategic Objective Strategic Plan Target Audited/Actual Performance Estimated Performance Medium term targets   2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 5.4 Number of Interns (under internship/learnership) placed with Principal Estate Agencies N/A 2298 Interns placed with placed with principal Estate Agents 3100 Interns placed with placed with principal Estate Agents 4000 Interns placed with principal Estate Agents 1000 Interns placed with principal Estate Agents /A

MTSF Targets Strategic Objective Strategic Plan Target Audited/Actual Performance Estimated Performance Medium term targets   2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 5.5 Percentage increase of Estate Agents operating in the subsidised and affordable housing areas N/A 10% increase of Estate Agents operating in the subsidised and affordable housing areas 5% increase of Estate Agents operating in the subsidised and affordable housing areas /A

MTSF Targets Strategic Objective Strategic Plan Target   Strategic Objective Strategic Plan Target Audited/Actual plan Estimated Performance Medium term targets 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 5.6 Implementation of transactional support project intervention 100% implementation of project N/A 100% implementation of transactional support Bi-annual data/ information on industry trends and analysis available. Bi-annual data/ information on industry trends and analysis available

Annual Performance Plan Targets Indicator no. Outcome performance Indicator Strategic Plan Target Audited/Actual Performance Estimated Performance Medium term targets   2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 3 Number of Estate agents from previously disadvantaged backgrounds 8100 N/A N/A N/A 1800 3600 4500 6000

Annual Performance Plan Targets Performance Indicator Audited/Actual Performance Estimated Performance Medium term targets   2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 3.1 Number of youth interns placed with property industry host employers through the property incubator process. N/A Development of Process, policy and procedures for the incubation process. 1000 youth placed with host employers. 2000 youth placed with host employers. 3000 youth placed with host employers. 3.2 Number of previously disadvantage individual’s interns placed with property industry host employers through the incubator process. 1000 previously disadvantaged placed with host employers. 2000 previously disadvantaged placed with host employers. 3000 previously disadvantaged placed with host employers. 3.3 Development of mechanisms and transformational initiatives to assist Estate Agents and the public to participate in the Estate Agents sector. Research performed in respect of barriers to entry in the Estate Agency sector, Regularization of Estate Agents and Amnesty regulation Implementation of the recommendations from Research performed Monitoring the progress of impact in respect of transformational tools.

Annual Performance Plan Targets 3.4 Development of Financial incentive process for Transformation activities N/A Development of financial incentive process for transformational activities Implementation of financial incentive process for transformational activities Monitoring of financial incentive process for transformational activities 3.5 Implementation of Amnesty campaign for Estate Agents Development of Amnesty policy and procedure Implement Amnesty campaign in respect of section 33.3 of the EAAAct. Monitor Amnesty campaign in respect of section 33.3 of the EAAAct. 3.6 Number of Bill boards set-up 15 Bill Boards set-up per annum. 20 Bill Boards set-up per annum. 25 Bill Boards set-up per annum. 3.7 Percentage of queries addressed in respect of consumer awareness from social media. Set-up of the social media page and process in respect of consumer awareness 90% of the social media queries addressed within 48 hours. 100% of the social media queries addressed within 48 hours. 100% of the social media queries addressed within 48 hours.

Future transformational programmes Being the professional body of the sector, the EAAB is committed to transforming the sector. Besides, it has a responsibility to support the Department of Human Settlements in achieving the priority stated in the MSTF Establishment of New Firms 10 000 new firms via Incubators Engagement and consultations with formalised and established businesses One Learner One Estate Agency Youth Programme: Learnership programme aimed at unemployed youth. 10 000 candidates to benefit over a period of three years. SMME Incubation Programme Regularisation of non-compliant estate agents. Interns over 35 years of age. “Missing middle” in the industry.

Changes made to focus on transformation Transformation department has been established at Executive Level and reporting to the Transformation Committee of the Board. The Transformation department is responsible for the following functions: Drive Transformation both internally at EAAB and externally to ensure compliance with applicable legislation such as Employment Equity Act and Broad-Based Black Economic Empowerment and Property sector charter. Ensure economic inclusion of the previously disadvantaged individuals (PDI) in the property sector. Engage with Public works department to ensure PDI participate in the property business. Establish a Real Estate Incubator for small struggling Estate Agencies, rehabilitation of non-compliant Estate Agencies and empowerment of youth, woman and persons with disabilities with focus on previously disadvantaged individuals. Project management of Title Deeds. Promote Consumer Education and awareness and protection by engaging other stakeholders in the property value chain like finance providers. Cross functional interface with other section to ensure that transformational agenda is pursued, i.e. reviewing models and initiatives.